Analyst Allen Lutz of Bank of America Securities maintained a Sell rating on Hims & Hers Health (HIMS – Research Report), retaining the price target of $21.00.
Allen Lutz has given his Sell rating due to a combination of factors impacting Hims & Hers Health’s market position and financial outlook. The recent launch of Novo Nordisk’s direct-to-consumer offering for Wegovy at a competitive price point introduces increased competition in the weight loss market. This move by Novo Nordisk, along with Eli Lilly’s similar strategy, poses a challenge to Hims & Hers Health’s pricing strategy, as their subscription model is significantly cheaper but includes provider costs.
Additionally, the removal of semaglutide from the drug shortage list adds further competition and uncertainty to Hims & Hers Health’s direct-to-consumer channel opportunities. The company’s projected revenue growth from personalized GLP-1 products appears uncertain, and there is skepticism about meeting the 2025 revenue guidance. The anticipated legal and regulatory challenges related to GLP-1 compounding also contribute to the cautious outlook, leading to the maintenance of an Underperform rating and a price objective of $21.
According to TipRanks, Lutz is a 5-star analyst with an average return of 10.3% and a 66.67% success rate. Lutz covers the Healthcare sector, focusing on stocks such as Hims & Hers Health, Teladoc, and Cardinal Health.
In another report released yesterday, Citi also reiterated a Sell rating on the stock with a $27.00 price target.
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